Work begins between MNL and the Province on a new Municipal Operating Grant formula.
July 18th, 2012
The President of Municipalities Newfoundland and Labrador, Mayor Churence Rogers, and the Minister of Municipal Affairs, the Honourable Kevin O'Brien, met on July 17th in Gander to begin the process of reviewing and renewing the municipal fiscal framework. The meeting was the continuation of a commitment made by the Minister to engage and consult with MNL on the development of a new municipal operating grant (MOG) formula.
President Rogers says he is happy the review process is now underway, but notes that much work has to be done in order to fix the current municipal operating grant formula in time for the 2013 budget. “Our first priority is to define a formula that will meet the needs of municipal governments. The current formula hasn't been updated or even applied since the mid 1980s, we need to create a blueprint that works for everyone.”
President Rogers also stresses that the discussion on MOGs is simply the beginning of a much larger talk on the general municipal fiscal framework. As Rogers notes, "MOGs are only part of the solution. There also needs to be a serious dialogue on other revenue raising tools, taxation policies, and the responsibilities of local governments vis-a-vis the provincial government." According to Rogers, meetings with the department have been scheduled and MNL will devote significant resources to advancing the cause of strengthening the municipal fiscal condition.
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Gail Woodfine - Communications
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